ECONOMIC CONDITIONS

Waikato Times, Volume 109, Issue 18359, 19 June 1931, Page 8

ECONOMIC CONDITIONS

WORLD-WIDE DEPRESSION

ALL CLASSES SUFFER. | I THE 10 PER CENT CUT. (Special to Times.) WELLINGTON, Friday. Referring to the economic conditions at the meeting of the Bank of New Zealand shareholders to-day the chair- j man, Me William Watson, pointed out that despite increased production, tlie shrinkage of many millions in tlie total value of exports denotes how seriously this country lias been affected by the present world-wide depression. Almost every class has suffered, sheep farmers most of all. Traders have been working on an inadequate margin of profit or have made no profit at all. People who are dependent on dividends have had their incomes greatly reduced. Unemployment is serious and will continue until labour can be profitably employed. That there will be a return to the prices of a few years ago is most unlikely. A great many persons who have enjoyed substantial incomes now find themselves without any income and forced to trench on capital. If they have not tlie necessary means, they must reduce their standard of living. If the standard of living can be improved in countries which compete with this country in the markets of the world, then tlie standard in the Dominion can be correspondingly improved. By the time the country settles down to a sound basis, very many millions will have been written off existing values. The recent “out” of 10 per cent, in salaries and wages will, in many instances, inflict more or less hardship, but I would emphasise that a great many persons have been obliged to face losses far in excess of 10 per cent. Continuance of tlie moratorium beyond which there was justification brought mortgages over landed properties into strong disfavour, the result being that borrowers on mortgage of land find that funds for such investments are more or less limited to those in the hands of the various Government lending departments. There are, no doubt, cases where mortgagees have attempted to deal harshly with mortgagors, but in recent years large sums have been written, off amounts of mortgage debts, extension of time granted, and interest rates reducod. A mortgagor who "plays the game” lias little to fear from Ills mortgagee, but it is regrettable to have to say that a great many mortgagors do not “play the game.” Last session another moratorium was enacted, which we fear will do more harm than good, inasmuch as il will tend to make lenders stiver than ever of mortgages, and force a greater volume of business than ever into the hands of Government departments.